Amerighi, Oscar; De Feo, Giuseppe - Center for Operations Research and Econometrics … - 2008
In this paper, we provide an explanation of why privatization may attract foreign investorsinterested in entering a … regional market. Privatization turns the formerly-public firm into a lessaggressive competitor since profit- maximizing output …/subsidycompetition for FDI before and after privatization. We show that policy competition isirrelevant in the presence of a public firm …